For many, an investment in a strong company like Procter & Gamble (P&G) will mean a solid financial decision. You may be wondering how much P&G stock would be worth today after investing $1,000 twenty years ago. Let’s just simplify this for you to appreciate the essence of long-term investing.
How much would your $1,000 be worth today?
If you invested $1,000 in P&G stocks way back, like 20 years ago, here is what it would have been worth today:
- In 2004, P&G’s stock price ranged between $50 and $55 per share.
- Let us assume you bought shares at $52 each. That means your $1,000 would have gotten you about 19 shares (since 19 shares would cost about $988).
- As of today, P&G’s stock price is around $150 per share.
- Your 19 shares would now be worth about $2,850 without considering dividends.
This means your investment would have nearly tripled in value over 20 years, just from the stock price increase alone.
What about dividends?
One thing that makes P&G a great investment is its strong history of paying dividends. Over the years, the company has consistently paid dividends to shareholders, and if you reinvested those dividends into more shares, your total investment would have grown even more.
- P&G has increased its dividend for over 60 consecutive years.
- The company currently pays a dividend yield of around 2.5%.
- Reinvesting dividends would have bought you more shares over time, compounding your returns.
With dividend reinvestment, your $1,000 investment could be worth significantly more than just $2,850 today.
Why does this matter?
This example highlights a few key points about long-term investing:
- Time in the market matters – The longer you stay invested, the more your money can grow.
- Dividends add up – Reinvesting dividends can help boost your overall returns.
- Strong companies provide stability – P&G has been around for over 180 years, proving its reliability.
Should you invest in P&G today?
P&G stocks have performed well enough these past years but this does not guarantee future results. But, P&G is a company with steady growth. If you want to invest in P&G, you can give it a try but the results are not guaranteed as the market fluctuates. Before, you go ahead to invest, do your own research as well or speak with your financial advisor.
Long term investment is not a get rich quick scheme. When you invest for the long term, you have to be patient, consistent and wait for your money to grow. Like the analysis from P&G stocks, if you hold on to certain stocks for a long time, you can make a lot more profit.
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